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Visa, MasterCard and PayPal to block transactions on unauthorized gaming sites

Tom Lasten 1 March 2014 - 07:43:23
Visa, MasterCard and PayPal to block transactions on unauthorized gaming sites

This news is likely to be a cause of concern amongst operators of unauthorized casinos operating in the European market: In the United Kingdom the three main payment providers Visa, MasterCard and PayPal have reached an agreement with the Gambling Commission relating to the blocking of transactions on all illegal gaming sites. Such measures are also expected to come into effect in France in the near future.

New laws and measures in the United Kingdom

The virtual gaming landscape in the United Kingdom is about to change significantly with the necessary measures required to ensure private operators carry out their obligations having been implemented, particularly with regards to taxation. There are now new legislative terms requiring online gaming sites to pay tax on their gross income including those which have relocated their base of operations abroad to avoid having to do so. Regardless of the location of their centre of operations, all such organizations catering to internet users in the United Kingdom are required to hand over a portion of their profits to the British government. The regulatory authority for virtual gaming in the United Kingdom has also enlisted the support of the payment providers Visa, MasterCard and PayPal to curb the ability of related establishments to circumvent this requirement.

“Internet gaming site operators who do not possess an official license issued by the Gambling Commission are concerned by this new development which is due to come into effect shortly.”

The three financial institutions have agreed to block any transactions involving unauthorized online casinos. Internet gaming site operators who do not possess an official license issued by the Gambling Commission are concerned by this new development which is due to come into effect shortly. In spite of the opposition of the House of Lords to this initiative, Baroness Jolly has proceeded to sign the agreement which will connect the Gambling Commission and the financial institutions, Visa, MasterCard and PayPal with only one more stage required in order for the bill to come into effect.

The decision of the Gambling Commission to assert itself.

In legal terms however, nothing has been implemented as yet and it is expected that a review of the bill governing unauthorized transactions will take place on the 18th of March pending which its application has been prohibited by the House of Lords. So far 171 members have voted in its favour while 185 have voted against it. The Gambling Commission has however already obtained agreements from Visa, MasterCard and PayPal ahead of the revision of the bill which has been scheduled for the following week.

Should this law come into effect, it is highly likely that other European regulatory bodies such as AAMS and ARJEL will follow the example set by the Gambling Commission. Whatever new suprises are yet to be revealed by the constantly evolving virtual gaming sector remain to be seen.

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